Best Options Technical Indicators

[paulgsavill]

Hello all and forgive my ignorance.

I am a new member to the forums from the land of Oz, but it's not all bad. We did give birth to Harry Kewell after all.

In the last couple of months I have been introduced to Options and have bought a dozen books and downloaded a couple of training packages.

Can any of you veterens help me with developing a suite of technical indicators for the American markets?

MACD seems to be a popular one that forms the backbone of most strategies, however I want to cover off a suite for more accurate and timely entry and exit signals for short-intermediate trading (a week or two).

With hundreds of indicators I'd love to know what you believe to be the best to use. I will begin with long put and call positions and progress to other strategies later. I just need the right weapons before I go to war!

Forgive me if this question has been asked a hundred times before.

Thanks,
Paul.

 

[RogerM]

Can any of you veterens help me with developing a suite of technical indicators for the American markets?

Hi Paul, and welcome to T2W. You may be asking the question in the wrong forum - because you need to be able to swing trade the underlying profitably before you venture into options. May I suggest that you have a look at threads in some of the other forums first?

Also try the T2W guide to options :-

http://www.trade2win.com/boards/showthread.php?t=8414

With hundreds of indicators I'd love to know what you believe to be the best to use. I will begin with long put and call positions and progress to other strategies later. I just need the right weapons before I go to war!

Paul.

Everyone seems to think that a simple long call or put is the way to start, and in my view that is the toughest way to make money from options. There have been many instances in these forums of people stating that they have bought a deep OTM put with 3 months to run, and then show pained surprise that they lose 100% of their stake. At least consider some sort of spread i.e. credit or debit spreads, butterflies etc - but avoid naked positions on stocks like the plague - and that includes short calls as well as short puts (unless you are prepared to buy the underlying stock).